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Steinhoff International Holdings, a South African furniture retailing giant that owns PEP-branded stores, has reached a deal to acquire Mattress Firm Holding Corporation, a Houston-based mattress retailer, for $2.4 billion in cash.

Steinhoff said the acquisition will create the world’s largest multi-brand mattress retail distribution network and facilitate the company’s entry into the American market, according to a statement released on Sunday.

“This transaction will allow Steinhoff to not only enter the U.S. market with an industry leading partner and a national supply chain, but it will also expand Steinhoff’s global market reach in the core product category of mattresses,” said Markus Jooste, Steinhoff’s CEO. “The Mattress Firm brand and speciality retail concept are a strong complement to the Steinhoff group retail brand portfolio in the many geographies where the group operates.”

Steinhoff has been trying to expand its retail business in North America and Europe amidst declining sales in its home continent. Last month, the company agreed to pay £597 million for Poundland, a British discount chain, which operates 900 stores in the UK, Ireland, and Spain.

Under the terms of the acquisition deal with Mattress Firm, Steinhoff will offer in cash $64 for each share in Mattress Firm, representing a 115 percent premium to the closing price of $29.74 per share as at August 5th.

Steinhoff intends to finance the acquisition through a combination of bank and bridge loans. The transaction has been unanimously approved by the board of directors of Mattress Firm and the management and supervisory boards of Steinhoff.

“The Mattress Firm board believes that the transaction provides significant value to our stockholders through the premium to our share price and the immediate liquidity at closing, while giving Mattress Firm an ideal partner with a proven track record in the complete mattress supply chain including the retail and manufacture of mattresses,” said Steve Stagner, Mattress Firm’s Executive Chairman.

Founded in 1964 in Germany, Steinhoff is an integrated retailer that sells furniture, household goods, and general merchandise in Africa, Europe, and Australia. In 2014, Steinhoff paid $5.7 billion to acquire Pepkor Holding Limited, a clothing retailer that operates PEP-branded stores across Africa, including 50 stores in Nigeria.

Steinhoff has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, with a total market capitalization of about 24 billion.

In the nine months ended on March 31, 2016, Steinhoff reported revenue and operating of $11 billion and $1.2 billion, respectively. The company employs about 105,000 people globally. Christo Wiese, a South African billionaire is the largest shareholder in Steinhoff with a 17 percent stake in the company.